Tuesday, 12 August 2014

Tata Steel secures deal with Subsea 7

Tata Steel has signed a global framework agreement with Subsea 7, one of the world’s leading contractors in engineering, construction and subsea services to the offshore industry, which will formalise a 25-year working relationship between the two global giants. This long-standing partnership, which has seen four multi-million pound North Sea contracts signed in the last 12 months alone, is cemented by the new agreement.

Consisting of four separate projects, the latest contracts are believed to be worth in the region of £10 million and will see Tata Steel supply in excess of 55km of pipe weighing more than 9,000 tonnes.

As a leading supplier of products and services to the oil and gas industry, Tata Steel will supply around 28km of carrier pipe, more than 27km of sleeve pipe, girth welding and triple jointing and the application of Glass Flake Epoxy pipe coating. Welding and coating will take place at the company’s offshore processing centre in Hartlepool, UK.

Tata Steel’s exploration and production commercial manager, Richard Broughton said: “Our work with Subsea 7 over the years has been extensive, particularly in the North Sea oil and gas industry which has become an increasingly important market for us. The new framework agreement will extend the work our companies already do together on a global scale demonstrating the value of Tata Steel in today’s oil and gas industry.

“We have the ability to provide the carrier pipe, sleeve pipe and carry out the coating work in-house demonstrating the customer-focused approach Tata Steel takes. Subsea 7 is an important supply chain partner and our relationship with the company continues to grow.”

With the forecast for high growth in the coming years in areas such as the Subsea, Umbilicals, Risers and Flowlines (SURF) market, the future for operational activity looks promising.

Subsea 7’s category director for group supply chain management, Phil Cran said: “This Global Frame Agreement reinforces the strong cooperation between Subsea 7 and Tata Steel, which has been developed over a period of multiple successful project deliveries. Subsea 7 fully expects this collaborative relationship to continue successfully in the future.”

Mr Broughton added: “This latest series of contracts further demonstrates the breadth of our offering as a company, over the last 25 years we have provided more than 83,000 tonnes of pipe to Subsea 7 over the course of 37 projects worldwide. From production to engineering our ability to consistently add value to the services we provide is what sets us apart in the market place.”